If you operate a business, then the whole point is to provide a service that makes money as a living. But you can lose money based on user returns, complaints, and fraud. All of which contribute to a poor public image and an even worse private financial image as you return monies via transaction processors. Should you incur excessive chargebacks for this, or other reasons, you could end up on a Member Alert to Control High-Risk.
Ensure Products are Described Accurately
One of the main reasons for a customer refund that results in a chargeback is inadequate product descriptions. You may end up on a MATCHlist as a result, making it difficult to secure a payment processor. In turn, your business will suffer. You must accurately describe everything in detail for all products and services on offer via your company. A customer always needs to know precisely what they are paying for. Suppose you don’t match your product description. In that case, the chance of a return, and therefore a chargeback through your payment processor, is much higher.
Outline Your Returns Policy
Further to outlining a product description, you can avoid more chargebacks by highlighting and adhering to a returns policy. Some customers are picky and might want to return a product even if nothing is wrong. Your returns policy should include:
- A reasonable time frame for returns.
- Conditions of return. For example, a product may be damaged due to improper use.
- The option for a refund or store credit. Store credit won’t amount to a chargeback.
- Easily readable language with clear definitions.
- Fees and costs incurred by a customer if any.
Additionally, it will help link to your returns policy on each product page or include it in the product description and promote it throughout your site.
Use a Clear Bank Statement Description
Whenever a customer buys a product from you using a payment card or system, it will show in their statement. It is common for customers to request a bank refund if an item shows up and they do not know what it is. This will result in a chargeback. Therefore, you should always use a descriptive name with details registered with your payment processing company. If your product is of a private nature, such as marital aids, do all you can to inform customers what your transaction will be labeled on their bank statements.
Incorporate Anti-Fraud Measures
As of 2020, online shopping accounts for 87% of all businesses. And the number is growing. However, online retail requires personal data and sensitive account information to handle transactions. Unfortunately, this makes eCommerce a prime target for fraudsters. Any items purchased using fraudulent means will result in chargebacks. The number is likely to be high if your site is insecure. Therefore, you should do all you can to provide security to your customers. Payment encryption, multi-factor authentication, and geolocation will help.
Provide Easy Contact
When a customer needs to return something or raise a complaint, they will typically contact you first. Yet if you don’t provide precise contact details and use them, they are likely to request a bank-issued refund. The bank will then recover the money resulting in a chargeback. Therefore, you should use your contact details to liaise with customers and come to an amicable solution that does not result in a chargeback. Email, phone numbers, or even social media profiles are excellent ways to communicate with customers.